'21 Moultonborough Tax Rate Delay

[tummyman]

Let's dig into the "facts" a little more. Did you know that at the end of last 2020 fiscal year, the town had an unassigned fund balance of over $5.4million that at the time, represented 55% of the TOTAL ANNUAL town general fund expenditures (page "v" of 2020 Annual Audit Report). Did you know that the 17+% fund balance is calculated using not only town expenditures but also includes the gross expenditures of the SAU45 school district, Carroll county assessment, and the state wide education assessment levy (same page "v" of 2020 Anual Audit Report)? Did you know that, on top of the 17+% unassigned fund balance that the town has additional specially designated trust fund reserves of $5.9 million (page 128 of 2020 Annual Report) as of the end of 2020? Did you know that the schools also have unassigned fund balances and health cost reserves ON TOP of the town amounts (ABC report on schools dated 1/26/2021)? The town is not poor by any measure. It seems to me there are PLENTY of reserve funds available. And no, we do not need a new library, new police or fire station, town hall, etc. etc. And nobody has said how much more unassigned funds will be added to these totals once the current fiscal year results are known. It may very well be that the 18 month budget had extra amounts that will be unexpended by the time the year closes. As a result, I respectfully say your arguments for a high reserve fund balance are not factually based and therefore absolutely not valid.

Let's get real honest here. The bulk of property taxes come from lakefront assessments where the majority of folks cannot vote on town expenditures. Warrant articles for many items show funding from the unassigned fund balance. By keeping the unassigned balances high and not returning excesses to taxpayers who actually paid the extra amounts, it is easy to fund and vote on discretionary projects by saying money comes from unassigned and not from the tax rate. Ah, not impacting the tax rate makes it so much easier for town meeting to approve the expenditure. Ms. Beadle was clear in wanting to hold these balances high for exactly this reason. So the many lakefront owners who have no say at town meeting are funding these excess reserves that are not being returned to taxpayers who overpaid in the first place. Mr. McGee was clearly advocating to return a larger portion of the excesses to the taxpayers and in my opinion should be applauded for that.

[thinkxingu]

Originally Posted by tummyman

Let's dig into the "facts" a little more. Did you know that at the end of last 2020 fiscal year, the town had an unassigned fund balance of over $5.4million that at the time, represented 55% of the TOTAL ANNUAL town general fund expenditures (page "v" of 2020 Annual Audit Report). Did you know that the 17+% fund balance is calculated using not only town expenditures but also includes the gross expenditures of the SAU45 school district, Carroll county assessment, and the state wide education assessment levy (same page "v" of 2020 Anual Audit Report)? Did you know that, on top of the 17+% unassigned fund balance that the town has additional specially designated trust fund reserves of $5.9 million (page 128 of 2020 Annual Report) as of the end of 2020? Did you know that the schools also have unassigned fund balances and health cost reserves ON TOP of the town amounts (ABC report on schools dated 1/26/2021)? The town is not poor by any measure. It seems to me there are PLENTY of reserve funds available. And no, we do not need a new library, new police or fire station, town hall, etc. etc. And nobody has said how much more unassigned funds will be added to these totals once the current fiscal year results are known. It may very well be that the 18 month budget had extra amounts that will be unexpended by the time the year closes. As a result, I respectfully say your arguments for a high reserve fund balance are not factually based and therefore absolutely not valid.

Let's get real honest here. The bulk of property taxes come from lakefront assessments where the majority of folks cannot vote on town expenditures. Warrant articles for many items show funding from the unassigned fund balance. By keeping the unassigned balances high and not returning excesses to taxpayers who actually paid the extra amounts, it is easy to fund and vote on discretionary projects by saying money comes from unassigned and not from the tax rate. Ah, not impacting the tax rate makes it so much easier for town meeting to approve the expenditure. Ms. Beadle was clear in wanting to hold these balances high for exactly this reason. So the many lakefront owners who have no say at town meeting are funding these excess reserves that are not being returned to taxpayers who overpaid in the first place. Mr. McGee was clearly advocating to return a larger portion of the excesses to the taxpayers and in my opinion should be applauded for that.

It's hard to follow your facts—how much in total does Moultonborough have in "rainy day" reserves? Over $11M? If so, I agree. That's a lot of money. A few million, though, can go really fast with a couple emergency repairs, and I'd much rather have a consistent tax rate with reserves than a fluctuating one to compensate.

Let's also recognize that you're clearly bitter about this process and the funds and that you may not be completely objective (just sayin'!).

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[tummyman]

Let's not get personal. Facts are facts. Yes, reserves are somewhere in the +/- $11M range. Enough said....

[thinkxingu]

Originally Posted by tummyman

Let's not get personal. Facts are facts. Yes, reserves are somewhere in the +/- $11M range. Enough said....

Fair enough—not my intention to get personal, just pointing out the tone; apologies, friend.

I agree that $11M is higher than I would expect Moultonborough to keep in reserve. I suppose, however, that I'd need to know how much that would affect the tax rate. If we're talking cents, I'd say keep it and work it out through the upcoming years' needs. Whole dollars might be a different question, though.

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[longislander]

I suppose, however, that I'd need to know how much that would affect the tax rate. If we're talking cents, I'd say keep it and work it out through the upcoming years' needs. Whole dollars might be a different question, though.

According to the town administrator at the meeting, the board reviewed numerous unassigned fund balance amounts to determine the rate, from $400,000 which would keep the rate at 7.13, to $1,000,000 which would lower to 6.98.

I think one of the board members used a hypothetical $300,000
(or something) assessment on a house for an idea of effect of the rates.

Not good at math, $300,000 at 7.13/1000 is $300,000 x .00713 = $2139 tax
.................................................. ..........$300,000 x .00698 = $2094 tax
Difference is $45 for the year.

................................................,. .......$1,000,000 x .00713 = $7,130 tax
.................................................. .......$1,000,000 x .00698 = $6,980 tax
Difference is $150 for the year.

Town policy #32 tries to keep Unassigned Fund balance at 12.5% (in fact, it is higher).
See item 5 (b) in town policy #32:

https://www.moultonboroughnh.gov/sit...alance2015.pdf


Maybe there should be more discussion on the use of unassigned funds on town meeting warrants ... or truly "unexpected" expense... with repeat performances!

Smoothing or keeping fairly linear, tax rates, is a good thing. However, a warrant "appropriation" should not be an anticipated, "unexpected," expense" .

Also, how much revenue interest is the fund earning?